I believe that the main institution for dependents should be the state-funded living co-ops. By the third decree the state cannot establish any rules for kinship relations. They must be regulated through individual contracts. Thus, the other two options should be allowed through such contracts, but the main or default mode of care should be state regulated. Furthermore, because of the second decree states would have a lot more funding to be able to run such dormitories in contrast to the real world where orphanages struggle to take care of its residents. Thus, dependents would be able to thrive under such care, while receiving the social benefits as well.